LNG Demand Keeps Natural Gas Prices Afloat Amid Ebbing Weather-Related Demand

Natural gas futures prices held steady at midday on Friday despite an expected drop in weather-related demand, thanks to continued strong demand from liquefied natural gas (LNG) exports.

The New York Mercantile Exchange (NYMEX) October contract rose by 2.6 cents to $2.927 per million British thermal units (MMBtu), while the benchmark cash price averaged $2.979, according to Intercontinental Exchange data.

The apparent contradiction between weather demand and LNG exports is due in part to the ongoing expansion of US LNG export capacity, which has led to increased shipments to markets around the world.